Prioritising employee’s health and wellness – A smart investment for the future of work

In today’s rapidly evolving workplace, employees’ health and wellness are no longer seen as afterthoughts but rather as critical factors for business success. As 79% of organisations in Singapore are plagued with talent shortages, the provision of comprehensive health benefits and increased focus on mental wellness have become strategic investments for employee attraction and retention.

No longer seen as nice-to-have perks, a working culture that prioritises employees’ wellbeing and mental health can and is impacting on an organisation’s productivity, bottom line and long-term success.

AIA Singapore’s Live Better Study 2024 underscores the importance of employee health and wellness. The study revealed that approximately three in five (59%) adults in Singapore believe they need or may need more mental health resources and support, and that workplace initiatives remained a key factor in addressing mental health challenges.

Despite it being indicated as a priority, 65% of HR departments in Singapore reported that health benefits were underutilised by employees. To further the national priority of addressing mental health issues, insurance providers play a crucial role in supporting organisations in caring for individual employees’ mental health through comprehensive, uncomplicated and affordable corporate insurance plans.

Absenteeism and presenteeism: The productivity killers

Amongst the myriads of factors affecting productivity, employees’ poor mental health maintains its position as one of the leading factors causing productivity levels to fluctuate. Especially evident in team-based workplaces, having one ill member could lead to a ‘herd mentality’ that brings down the team’s overall mental state, causing a domino effect and lowered productivity across the board.

In the long run, this could have significant effects on an organisation’s productivity, culture, and profitability.

A common occurrence that reflects poor mental health is absenteeism. Not to be mistaken for employees’ absence due to valid medical reasons, absenteeism refers to the habitual or frequent absence of an employee from work, often without valid reasons. This can lead to delays in work submission due to postponed meetings or slower replies, which results in wider implications that further negatively impact on the teams and overall productivity.

On the other hand, another interesting phenomenon is presenteeism. Referencing employees who show up for work but operate at a reduced capacity due to mental health issues or other reasons, presenteeism can also affect quality of work and overall productivity. Together, absenteeism and presenteeism are two big productivity killers that drive up costs for organisations and disrupt team cohesion.

An organisation’s role in cultivating a productive work environment

Understanding how positive mental health amongst employees leads to higher productivity, organisations should focus on fostering a culture that prioritises health over productivity among employees. When employees are in optimal health, they are more focused, efficient, and are more likely to deliver high-quality work.

Against the backdrop of Singapore’s rising healthcare costs, concerns over expansive medical expenses could act as a deterrent for individuals seeking professional mental health support. In such instances, organisations with comprehensive corporate insurance plans providing accessibility to such services encourage employees to seek timely professional support for their physical and mental health concerns.

Consistently recognised as Singapore’s top corporate solutions provider, AIA Singapore’s focus on empowering organisations to provide employees with access to quality healthcare services based on their evolving needs has proven to be effective.

READ MORE: The surprising power of employee choice in workplace wellness

For instance, the AIA Vitality programme is one of the most comprehensive wellness programmes in Singapore. Apart from offering a wide range of tools and benefits, from personalised health goals to partner rewards, to support overall wellness and encourage proactive health management, it also introduces fun and interactive ways, such as weekly challenges for employees to take charge of their health. Through the annual #LiveWithVitality Corporate Challenge, an inter-company challenge that organisations can sign up for, employees get to participate in various physical and wellness activities that promote a healthy lifestyle while standing a chance to win prizes. The activities include health screening, telematch and other team sporting events which help instill a sense of care, support and team camaraderie within the workplace, and in turn, demonstrating how employees’ health and mental wellbeing remains a priority.

Healthy workplace cultures drive talent attraction and retention

A 84% of global employees consider benefits packages when deciding on a new job, it is evident that the benefits of health-centred workplace policies extend beyond productivity – they enhance talent acquisition and retention.

In this modern society. Gen Zs, a rising force in the workforce, increasingly values company culture and health support over salary alone. Organisations that invest in a positive health culture and responsive wellness initiatives can better attract top talent and enjoy lower turnover rates, ultimately reducing recruitment costs. By investing in employee health, organisations build a reputation that appeals to talent, fosters loyalty, and bolsters business relationships.

The advantages of investing in employee health are clear – healthy employees are not only more productive, but they also contribute to a positive work environment and long-term business sustainability. As societal needs and healthcare standards evolve, expectations of health benefits and organisational support will also change. To stay ahead, organisations should prioritise comprehensive health insurance and wellness programmes that are equally valued by employees. Employee health and wellness are no longer just buzzwords; they are essential components of a sustainable and thriving business.

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